In February 2013, Yahoo’s CEO Marissa Mayer banned telecommuting after receiving metrics proving it was bad for productivity. The Yahoo IT team had studied the company's Virtual Private Network (VPN) and found telecommuting employees didn't log in enough to do all the work they claimed.

While telecommuting didn't work for Yahoo, work from home (WFH) policies can benefit a company when implemented properly. My office manager works from home two or three days a week. She’s happy as a lark, and I’ve been very pleased with her results.

Generate significant savings. For most companies, overhead costs come second only to employee payrolls. When a significant portion of your employees WFH you can save money on office space, equipment, and utilities.

Increase employee happiness. Hiring and training new employees costs more than keeping existing employees happy enough to stay with you. Jay Steinfeld, CEO of Blinds Inc., cites telecommuting as one of the contributors to their low 5% employee turnover rate.

Is the job compatible with telecommuting? Not all jobs are suited to WFH – such as direct customer contact in the office. If you think telecommuting won't work for the job, say why. Set policies on which positions are WFH eligible.

Make it conditional. Tell your team members that telecommuting represents a privilege you can withdraw if productivity drops.

Allow time for the transition. You'll inevitably face a period of varying productivity as telecommuting goes into effect. Give the employee time to adjust before you start monitoring heavily.

Trust, but verify. Make sure they're doing their work. Set metrics your people must meet or exceed. Use a very specific task list you expect completed by certain dates. If they aren't, revoke the privilege until productivity improves.

Provide the right tools. Like all workers, your telecommuters need specific tools to succeed. Give them what they require. If necessary, have your IT people help set up certain equipment in home offices.

Have them visit the office periodically. Telecommuters should work from the central office on occasion and attend certain meetings to maintain relationships and have meaningful dialog.

Action step

Telecommuting can greatly benefit your team or business, but it may not fit all situations. If you feel uncertain about it, initiate a dialog with an interested employee and try one or two days a week. Remember, it's not an all-or-nothing decision. You can pull back as needed.

Laura Stack, aka The Productivity Pro®, gives speeches and seminars on sales and leadership productivity. For more than 25 years, she’s worked with Fortune 1000 clients to reduce inefficiencies, execute more quickly, improve output, and increase profitability. Stack is the author of seven books, including "Doing the Right Things Right: How the Effective Executive Spends Time."